Re-rating of the US economy is giving cause for concern in New Zealand as the dollar continues to rise against the American dollar.

It has reached a further post float high, breaking the 88c barrier, and is causing economic commentators to ask what can government and the Reserve Bank do to intervene.

See weekly market update video with IRG BOP's Jonathan York below.

The continuing strengthening of the New Zealand dollar is making life more difficult for exporters and this is problematic given the National Government's push for an export-led recovery from the global financial crisis.

Speaking on TV3's Firstline this morning Prime Minister John Key said any kind of intervention in New Zealand would have to come from the Reserve Bank, although he believed it would achieve little.

'Essentially the financial markets are saying that, on a relative basis, New Zealand is a better bet than the United States at the moment.

'That reflects their very sluggish growth, their very high levels of unemployment and of course the massive debt that they have.

'So on the backdrop of that, if the Reserve Bank was to intervene, you'd have to say up until this point anyway at least, that would have been very unsuccessful, and may not be a lot of reasons to believe it would be successful in the future.”